Bank credit growth rises to 10.22% in August, highest in over three months

Bank credit growth rises to 10.22% in August, highest in over three months

Systemic credit growth has increased to 10.22 percent year-on-year in the fortnight ended August 8, the highest in over three months. This shows that the banks are ramping up the credit ahead of the festive season amid rate cuts and expected boost in consumption after tax reforms announced by the government.

The last time when the bank credit growth was above current growth rate was as on April 18, 2025, at 10.28 percent.

During the fortnight ended July 25, bank credit growth rose to 10.03 percent.

According to the Reserve Bank of India’s data, bank credit stood at Rs 186.06 lakh crore as on August 8, 2025, as compared to Rs 168.80 lakh crore as on August 9, 2024.

Meanwhile, deposit growth in the system at 10.05 percent year-on-year, Bank credit growth has outpaced deposit growth by 17 basis points (bps).

Deposit of banks stood at Rs 234.74 lakh crore as on August 8, 2025, as compared to Rs 213.30 lakh crore as on August 9, 2024, as per RBI’s data.

Further, the investment of banks in the central and state government securities grew 6.7 percent year-on-year to Rs 67.49 lakh crore as on August 8, 2025.